H. B. 2816
(By Mr. Speaker, Mr. Kiss, and Delegates
Michael and Ashley)
[Introduced March 9, 2001; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact section eleven, article seven-b,
chapter eighteen of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to the teachers'
defined contribution retirement system; and authorizing
transfer of service credit and retirement account to the
public employees retirement system if a member's employment is
terminated with a participating employer and the member is
later employed by a state agency.
Be it enacted by the Legislature of West Virginia:
That section eleven, article seven-b, chapter eighteen of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 7B. TEACHERS' DEFINED CONTRIBUTION RETIREMENT SYSTEM.
§18-7B-11. Termination of membership.
Any member whose employment with a participating employer terminates after the completion of six complete years of employment
service shall be eligible to terminate his or her annuity account
and receive a distribution from the member's annuity account, in an
amount equal to the member's contribution plus one third of the
employer contributions and any earnings thereon. Any member whose
employment with a participating employer terminates after the
completion of nine complete years of employment service shall be
eligible to terminate his or her annuity account and receive a
distribution from the member's annuity account, in an amount equal
to the member's contribution plus two thirds of the employer's
contributions and any earnings thereon. Any member whose
employment with a participating employer terminates after the
completion of twelve complete years of employment service shall be
eligible to terminate his or her annuity account and receive a
distribution of all funds contributed and accumulated in his or her
annuity account. Any member whose employment with a participating
employer terminates prior to the completion of six complete years
of employment service shall be eligible to terminate his or her
annuity account and receive a distribution from the member's
annuity account, in an amount equal to the member's contribution
plus any earnings thereon:
Provided, That on the death or
permanent, total disability of any member, that member shall be
eligible to terminate his or her annuity account and receive all
funds contributed to or accumulated in his or her annuity account.
The remaining balance, if any, in the member's account after
the distribution shall be remitted and paid into a suspension
account, hereby created, to be administered by the board. The
board shall promulgate rules regarding the distribution of any
balance in the special account created by this section:
Provided,
That any funds in the account shall be used solely for the purpose
of reducing employer contributions in future years.
Any account balances remitted to the suspension account herein
shall be maintained by the board in
said the suspension account in
the name of the terminated employee for a period of five years
following initial remittance to the suspension account. For each
said terminated employee at the culmination of the aforesaid
five-year period, the board shall certify in writing to each
contributing employer the amount of the account balances plus
earnings thereon attributable to each separate contributing
employers previously terminated employees' accounts which have been
irrevocably forfeited due to the elapse of a five-year period since
termination pursuant to section sixteen of this article.
Upon certification to the several contributing employers of
the aggregate account balances plus earnings thereon which have
been irrevocably forfeited pursuant to this section, the several
contributing employers shall be permitted in the next succeeding
fiscal year or years to reduce their total aggregate contribution
requirements pursuant to section seventeen of this article, for the then current fiscal year by an amount equal to the aggregate
amounts irrevocably forfeited and certified as such to each
contributing employer.
Upon the utilization of the amounts irrevocably forfeited to
any contributing employer as a reduction in the then current fiscal
year contribution obligation and upon notification provided by the
several contributing employers to the board of their intention to
utilize irrevocably forfeited amounts, the board shall direct the
distribution of
said the irrevocably forfeited amounts from the
suspension account to be deposited on behalf of the contributing
employer to the member annuity accounts of its then current
employees pursuant to section seventeen of this article.
If a member's membership in the defined contribution system
terminates and the member is then transferred to or later employed
by a state agency, the member may transfer the service time and
retirement account, including all contributions made to that
account by both the member and employer, from the defined
contribution system to the public employees retirement system and
shall receive full credit towards retirement for the service earned
as a member of the defined contribution system.
NOTE: The purpose of this bill is to permit the transfer of
service credit and retirement account to the public employees
retirement system from the teachers' defined contribution
retirement system if a member's employment is terminated with a
participating employer in the defined contribution system and that
person is transferred to, or later employed by, a state agency.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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